Porter's Generic Strategy

In: Business and Management

Submitted By Brookskubi
Words 2894
Pages 12
The Discipline of Market Leaders Customer Value Model
(Porter’s generic strategies with particular reference to Apple Inc)

Table of contents
Introduction………………………………………………………………………………………………….
Porter’s three Generic Competitive Strategies………………………………………………………….
Cost Leadership……………………………………………………………………………………………
Differentiation……………………………………………………………………………………………….
Focus or Niche strategy…………………………………………………………………………………...
Apple Inc…………………………………………………………………………………………………….
Identification and Critical Evaluation of the Company’s Existing Strategies…………………………
Apple Inc Cost leadership Strategy………………………………………………………………………
Apple Inc Differentiation Strategy………………………………………………………………………...
Apple Inc Focus or Niche Strategy……………………………………………………………………….
Conclusion…………………………………………………………………………………………………..
References………………………………………………………………………………………………….

1.0 Introduction
A firm's relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus. The focus strategy has two variants, cost focus and differentiation focus. Michael Porter suggested that businesses can secure a sustainable competitive advantage by adopting one of three generic strategies. According to Michael E. Porter's description of the five forces of competition, companies can raise their profitability by placing their activities…...

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